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Renault

Type Industry Founded Founder(s) Headquarters Area served Key people Products Revenue Operating income Profit Employees Subsidiaries

Website

Soci?t? Anonyme (Euronext: RNO [1]) Automotive industry 25 February 1899 Louis Renault, Marcel Renault, Fernand Renault Boulogne-Billancourt, France Worldwide (118 countries) Carlos Ghosn (Chairman and CEO), Patrick Pelata (COO) Automobiles, commercial vehicles, financing 33.71 billion (2009)[2] (955 million) (2009)[2]

(3.125 billion) (2009)[2] 124,300 (2009)[2] Automobile Dacia (99.43%) Renault Samsung Motors (80.1%) [3]

Renault S.A. (Euronext: RNO [1]) is a French automaker producing cars, vans, buses, tractors, and trucks, and, in the past, autorail vehicles. Due to its alliance with Nissan, it is currently the world's fourth largest automaker.[4]

Headquartered in Boulogne-Billancourt, Renault owns the Romanian automaker Automobile Dacia and the Korean

automaker Renault Samsung Motors. The Lebanese-Brazilian Carlos Ghosn is the current CEO. The company's most successful cars to date is the Renault Clio and the Renault Laguna, and its core market is Europe.[4] The company is

known for numerous revolutionary designs, security technologies, and motor racing.

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History

Foundation and early years (1898?1918)

Producing cars since late 1897, the Renault corporation was founded in 1899 as Soci?t? Renault Fr?res by Louis Renault and his brothers Marcel and Fernand. Louis was a bright, aspiring young engineer who had already designed and built several models before teaming up with his brothers, who had honed their business skills working for their father's textiles firm. While Louis handled design and production, Marcel and Fernand handled company management.

The first Renault car, the Renault Voiturette 1CV was sold to a friend

of Louis' father after giving him a test ride on 24 December 1898. The

client was so impressed with the way the tiny car ran and how it

climbed the streets that he bought it.

Louis Renault in 1903

The brothers immediately recognised the publicity that could be

obtained for their vehicles by participation in motor racing and Renault

made itself known through achieving instant success in the first city-to-city races held in Switzerland resulting in

rapid expansion for the company. Both Louis and Marcel Renault raced company vehicles, but Marcel was killed in

an accident during the 1903 Paris-Madrid race. Although Louis Renault never raced again, his company remained very involved, including Ferenc Szisz winning the first ever Grand Prix motor racing[5] event in a Renault AK 90CV

in 1906. Louis was to take full control of the company as the only remaining brother in 1906 when Fernand retired

for health reasons.

The Renault reputation for innovation was fostered from very early on. In 1899, Renault launched the first production sedan car. At the time, cars were very much luxury items, and the price of the smallest Renaults available being 3000 francs reflected this; an amount it would take ten years for the average worker at the time to earn. As well as cars, Renault manufactured taxis, buses and commercial cargo vehicles in the pre-war years, and during World War I (1914?18) branched out into ammunition, military airplanes and vehicles such as the revolutionary Renault FT-17 tank. Company's military designs were so successful that Renault himself was honoured by the Allies for his company's contributions to their victory. By the end of the war, Renault was the number one private manufacturer in France. The company also exported their engines overseas to American auto manufacturers for use in such automobiles as the GJG which used a Renault 26 hp or 40 hp four-cylinder engine.

Between the world wars (1919?38)

Louis Renault enlarged the scope of his company after 1918, producing agricultural and industrial machinery. However, Renault struggled to compete with the increasingly popular small, affordable "people's cars", while problems with the stock market and the workforce also adversely affected the company's growth. Renault also had to find a way to distribute its vehicles more efficiently. In 1920, he signed one of its first distribution contracts with Gustave Gueudet, an entrepreneur from northern France.

The pre-First World War cars had a distinctive front shape caused by positioning the radiator behind the engine to give a so called "coalscuttle" bonnet. This continued through the 1920s and it was not until 1930 that all models had the radiator at the front. The bonnet badge changed from circular to the familiar and continuing diamond shape in 1925. Renault models were introduced at the Paris Motor Show which was held in September or October of the year. This has led to a slight confusion as to vehicle identification. For example a "1927" model was mostly produced in 1928.

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Renault produced a range of cars from small to very large. For example in 1928 which was the year when Renault produced 45,809 cars the range of 7 models started with a 6cv, a 10cv, the Monasix, 15cv, the Vivasix, the 18/24cv and the 40cv. There was a range of factory bodies, of up to 8 styles, and the larger chassis were available to coachbuilders. The number of a model produced varied with size. The smaller were the most popular with the least produced being the 18/24cv. The most expensive factory body style in each range was the closed cars. Roadsters and tourers (torpedoes) were the cheapest.

The London operation was very important to Renault in 1928. The UK market was quite large and from there "colonial" modified vehicles were dispatched. Lifted suspensions, enhanced cooling and special bodies were common on vehicles sold to the colonies. Exports to the USA by 1928 had almost reduced to zero from their high point prior to WW1 when to ship back a Grand Renault or similar high class European manufactured car was common. A NM 40cv Tourer had a USA list price of over $4,600 being about the same as a V12 Cadillac Tourer. Closed 7 seat limousines started at $6,000 which was more expensive than a Cadillac V16 Limousine.

The whole range was conservatively engineered and built. The newly introduced 1927 Vivasix, model PG1, was sold as the "executive sports" model. Lighter weight factory steel bodies powered by a 3180 cc six cylinder motor provided a formula that went through to the Second World War.

The "de Grand Luxe Renaults", that is any with over 12-foot (3.7 m) wheelbase, were produced in very small numbers in two major types - six and eight cylinder. The 1927 six cylinder Grand Renault models NM, PI and PZ introduced the new three spring rear suspension that considerably aided road holding that was needed as with some body styles over 90 mph (140 km/h) was possible. The 8 cylinder Reinastella was introduced in 1929. This model led on to a range culminating in the 1939 Suprastella. All Grand Renaults from 1923 are classed as classics by CCCA. Coachbuilders included Kellner, Labourdette, J.Rothschild et Fils and Renault bodies. Closed car Renault bodies were often trimmed and interior wood work completed by Rothschild.

Renault also introduced in 1928 an upgraded specification to the larger cars designated "Stella". Vivastella's and Grand Renaults had upgraded interior fittings and had a small star fitted above the front hood Renault diamond. This proved to be a winning marketing differentiator and in the 1930s all cars changed to the Stella suffix from the previous two alpha character model identifiers.

The Grand Renaults were built using a considerable amount of aluminium. Engines, brakes, transmissions, floor and running boards and all external body panels were aluminium. Of the few that were built, many went to scrap to aid the war effort.

World War II and after (1939?71)

After France surrendered in 1940, Louis Renault refused to produce tanks for Nazi Germany, which took control of his factories. He produced lorries for the German occupiers instead. The Provisional Government of the French Republic accused him of collaborating with Germans and arrested him just after the liberation of Vichy France in 1944. He was incarcerated at Fresnes prison where he died under unclear circumstances,[6] awaiting trial.[7]

On January 1, 1945, by decree of General de Gaulle based on the untried[6] accusations of collaboration, the company was

Renault Fr?gate

expropriated from Louis Renault posthumously and nationalised as R?gie Nationale des Usines Renault. In retrospect, Renault's were the only factories permanently expropriated by the French government.[8]

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Under the leadership of Pierre Lefaucheux, Renault experienced both a commercial resurgence as well as labor unrest -- that was ultimately to continue into the 1980s.

In secrecy during the war, Louis Renault had developed the rear engine 4CV[9] which was subsequently launched under Lefacheux in 1946. Renault debuted its flagship model, the largely conventional 2-litre 4-cylinder Renault Fr?gate (1951?1960), shortly thereafter. The 4CV proved itself a capable rival for cars such as the Morris Minor and Volkswagen Beetle; its sales of more than half a million ensured its production until 1961.

Renault 4CV

After the success of the 4CV, Lefacheux continued to defy the postwar French Ministry of Industrial Production, which had wanted to convert Renault solely to truck manufacture,[10] by directing the development of its successor. He oversaw the prototyping of the Dauphine (until his death) -- enlisting the help of artist Paule Marrot in pioneering the company's textile and color division.

The Dauphine sold extremely well as the company expanded production and sales further abroad, including Africa and North America. The Dauphine sold well initially in the US, where it subsequently became outdated against increased competition, including from the country's nascent domestic compacts such as the Chevrolet Corvair.

Renault subsequently launched two cars which became very successful -- the Renault 4 (1961?1992) and Renault 8. The larger rear-engined Renault 10 followed the success of the R8, and was the last of the rear-engined Renaults. The company achieved success with the more modern and more upmarket Renault 16, a pioneering hatchback launched in 1966, followed by the smaller Renault 6.

Modern era (1972?1980)

The company's compact and economical Renault 5 model, launched in 1972, was another success, particularly in the wake of the 1973 energy crisis. The R5 remained in production until 1984 when it was replaced by the Super5. The formula was much the same however, and the Super5 inherited its styling lines from its father (however with a transversal engine, as opposed to the longitudinal engine inherited by the first generation Renault 5 from the Renault 4). Soon after, the four-door Renault 12 model slotted into the Renault range between the R6 and the R16, and introduced a new styling theme. Throughout the '70s the R4, R5, R6, R12 and R16 maintained Renault's production. In the '80s the latter two were replaced by the R9 (and its R11 sedan variation) and the R15/R17 sport coupes. Both the R15/R17 were essentially identical two-door coupes, but while the R15 had a large glassy greenhouse, the R17 had thick pillars behind the doors, with slatted windows, to make it look the sportier of the two.

Endangered like all of the motor industry by the energy crisis, during the mid seventies the already expansive company diversified further into other industries and continued to expand globally, including into South East Asia. The energy crisis also provoked Renault's attempt to reconquer the North American market; despite the Dauphine's success in the United States in the late 1950s, and an unsuccessful car-assembly project in Saint-Bruno-de-Montarville, Quebec, (1964?72), Renault as a stand-alone brand, began to disappear from North America at the end of the '70s.

Throughout the decades Renault developed a collaborative partnership with Nash Motors Rambler and its successor American Motors Corporation (AMC). From 1962 to 1967, Renault assembled complete knock down (CKD) kits of the Rambler Classic sedans in its factory in Belgium. Renault did not have large or luxury cars in its product line and the "Rambler Renault" would be aimed as an alternative to the Mercedes-Benz "Fintail" cars. Similar to the fate of some of these Mercedes cars at the time, many of these "American" Renaults finished their life working as taxis. Later, Renault would continue to make and sell a hybrid of AMC's Rambler American and Rambler Classic called the Renault Torino in Argentina (sold through IKA-Renault). Renault partnered with AMC on other projects, such as

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development of a rotary concept engine in the late 60s, and would eventually own AMC in 1980.

This was one of a series of collaborative ventures undertaken by Renault in the late 1960s and 1970s, as the company established subsidiaries in Eastern Europe, most notably Dacia in Romania, and South America (many of which remain active to the present day) and forged technological cooperation agreements with Volvo and Peugeot (for instance, for the development of the PRV V6 engine, which was used in Renault 30, Peugeot 604, and Volvo 260 in the late 1970s.).

Renault 5 Turbo

In the mid 1960s an Australian arm, Renault Australia, was set up in Heidelberg, Melbourne, the company would produce and assemble

models from the R8, R10, R12, R16, sporty R15, R17 coupe's to the

R18 and R20, soon the company would close in 1981. Interestingly Renault Australia did not just concentrate on

Renaults, they also built and marketed Peugeots as well. From 1977, they assembled Ford Cortina station wagons

under contract- the loss of this contract led to the closure of the factory.

In North America, Renault formed a partnership with AMC, lending AMC operating capital and buying a small percentage of the company in late 1979. Jeep was keeping AMC afloat until new products, particularly the XJ Cherokee, could be launched. When the bottom fell out of the 4x4 truck market in early 1980 AMC was in danger of going bankrupt. To protect its investment, Renault bailed AMC out with a big cash influx -- at the price of a controlling interest in the company of 47.5%. Renault quickly replaced some top AMC executives with their own people.

1974 Renault 15 coupe

The Renault?AMC partnership also resulted in the marketing of Jeep vehicles in Europe. Some consider the Jeep XJ Cherokee as a joint AMC/Renault project since some early sketches of the XJ series were made in collaboration by Renault and AMC engineers (AMC insisted that the XJ Cherokee was designed by AMC personnel; however, a former Renault engineer designed the Quadra-Link front suspension for the XJ series). The Jeep also used wheels and seats from Renault. Part of AMC's overall strategy when the partnership was first discussed was to save manufacturing cost by using Renault sourced parts when practical, and some engineering expertise. This led to the improvement of the venerable AMC in-line six -- a Renault/Bendix based port electronic fuel injection system (usually called Renix) that transformed it into a modern, competitive powerplant with a jump from 110 hp (82 kW) to 177 hp (132 kW) with less displacement (from 4.2L to 4.0L).

The Renault-AMC marketing effort in passenger cars was not as successful compared to the popularity for Jeep vehicles. This was because by the time the Renault range was ready to become established in the American market, the second energy crisis was over, taking with it much of the trend for economical, compact cars.

One exception was the Renault Alliance (an Americanized version of the Renault 9), which debuted for the 1983 model year. Assembled at AMC's plant in Kenosha, Wisconsin, the Alliance received Motor Trend's domestic Car of The Year award in 1983. The Alliance's 72% U.S. content allowed it to qualify as a domestic vehicle, making it the first car with a foreign nameplate to win the award. (In 2000, Motor Trend did away with separate awards for domestic and imported vehicles.)

Renault sold some interesting models in the U.S. in the 1980s, especially the simple-looking but fun Renault Alliance GTA and GTA convertible -- an automatic-top convertible with a 2.0 L engine -- big for a car of its class; and the ahead-of-its-time Renault Fuego coupe. The Alliance was followed by the Encore (U.S. version of the Renault 11), an Alliance-based hatchback.

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Renault's Wisconsin-built and imported models quickly became the target of customer complaints for poor quality, and sales plummeted.

Eventually, Renault sold AMC to Chrysler in 1987 after the assassination of Renault's chairman, Georges Besse. The Renault Medallion (Renault 21 in Europe) sedan and wagon was sold from 1987 to 1989 through Jeep-Eagle dealerships. Jeep-Eagle was the new division Chrysler created out of the former American Motors. However, Renault products were no longer imported into the United States after 1989. Rumors have since persisted about Renault's return to the U.S. market; all of them to date have been unfounded.

A completely new full-sized 4-door sedan, the Eagle Premier, was developed during the partnership between AMC and Renault. The Premier design, as well as its state-of-the-art manufacturing facility in Bramalea, Ontario, Canada, were the starting point for the sleek LH sedans such as the Eagle Vision and Chrysler 300M.

In the late seventies and early eighties Renault increased its involvement in motorsport, with novel inventions such as turbochargers in their Formula One cars. The company's road car designs were revolutionary also -- the Renault Espace was one of the first minivans and was to remain the most well-known minivan in Europe for at least the next two decades. The second-generation Renault 5, the European Car of the Year-winning Renault 9, and the most luxurious Renault yet, the 25 were all released in the early 1980s, building Renault's reputation, but at the same time the company suffered from poor product quality which reflected badly in the image of the brand and the ill-fated Renault 14 is seen by many as the culmination of these problems in the early 1980s.

Restructuring (1981?95)

Although its cars were somewhat successful both on the road and on

the track, Renault was losing a billion francs a month and reported a

deficit of 12.5 billion in 1984. The government intervened and Georges

Besse was installed as chairman; he set about cutting costs

dramatically, selling off many of Renault's non-core assets,

withdrawing almost entirely from motorsports, and laying off many

employees. This succeeded in halving the deficit by 1986, but he was

murdered by the communist terrorist group Action Directe in

Renault 25

November 1986. He was replaced by Raymond L?vy, who continued

along the same lines as Besse, slimming down the company considerably with the result that by the end of 1987 the

company was more or less financially stable.

A revitalised Renault launched several successful new cars in the early 1990s, including the phenomenally successful 5 replacement, the Clio, the second-generation Espace, the innovative Twingo, the Laguna, the Safrane and the 19. In the mid-1990s the successor to the R19, the Renault M?gane, was the first car ever to achieve a 4-star rating, the highest at the time, in EuroNCAP crash test in passenger safety. In 1996 Renault introduced M?gane Sc?nic, a completely new class of cars, a compact monospace with a footprint of a regular M?gane. The return to success on the road was matched by a return to success on the racetrack -- Renault-powered cars won the Formula One World Constructors' Championship from 1992 to 1997 with both the Williams and Benetton teams.

Throughout this period, Renault's European advertising famously made extensive use of Robert Palmer's song "Johnny And Mary". The earlier television advertisements used Palmer's original version, while a range of special recordings in different styles were produced during the 1990s; most famously Martin Taylor's acoustic interpretation which he released on his album Spirit of Django. Taylor recorded many alternate versions for Renault; the last being in 1998 for the launch of the all-new Renault Clio.

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Privatisation (1996?99)

It was eventually decided that the company's state-owned status was detrimental to its growth, and Renault was privatized in 1996. This new freedom allowed the company to venture once again into Eastern Europe and South America, including a new factory in Brazil and upgrades for the infrastructure in Argentina and Turkey. It also meant the end of the aforementioned successful Formula 1 campaign.

In the twenty-first century, Renault was to foster a reputation for distinctive, outlandish design. The second generation of the Laguna and M?gane featured ambitious, angular designs which turned out to be highly successful. Less successful were the company's more upmarket models. The Avantime, a bizarre coup? / multi-purpose vehicle, sold very poorly and was quickly discontinued while the luxury Vel Satis model did not sell as well as hoped. However, the design inspired the lines of the second generation M?gane, the most successful car of the maker. As well as its distinctive styling, Renault was to become known for its car safety; currently, it's the car manufacturer with the largest number of models achieving the maximum 5 star rating in EuroNCAP crash tests. The Laguna was the first Renault to achieve a 5 star rating; in 2004 the Modus was the first to achieve this rating in its category.

The government of France owns 15.7 per cent of the company. Louis Schweitzer has been the Chairman of Renault since 1992 and was CEO from 1992 to 2005. In 2005, Carlos Ghosn (also CEO of Nissan) became Renault's CEO, with Louis Schweitzer staying on as Chairman.

Renault owns Samsung Motors (Renault Samsung Motors) and Dacia, as well as retaining a minority (but controlling) stake (20%) in the Volvo Group. (Volvo passenger cars are now a subsidiary of the Zhejiang Geely Holding Group). Renault bought 99% of the Romanian company Dacia, thus returning after 30 years, in which time the Romanians built over 2 million cars, which primarily consisted of the Renault 8, 12 and 20. Renault also owns 44.5% of Nissan, while Nissan owns 15% of Renault. This is the basis for the Renault-Nissan Alliance, which is now in its 10th year.

Renault Nissan alliance (1999? )

Signed on 27 March 1999, the Renault?Nissan Alliance is the first of its kind involving a Japanese and a French company, each with its own distinct corporate culture and brand identity, linked through cross-shareholding. Renault has a stake of 44.4 percent in the Japanese automaker Nissan, while Nissan in turn has a 15 percent stake (non-voting) in Renault.

For 2004 Renault reported a 43% rise in net income to 3.5 billion and

5.9% operating margin, of which Nissan contributed 1,767 million.

The Group (Renault, Dacia, Renault Samsung Motors) posted a 4.2% increase in worldwide sales to a record 2,489,401 vehicles,

Renault Megane II F1 team Edition

representing a global market share of 4.1%. Renault retained its position as the leading brand in Europe with 1.8

million passenger cars and light commercial vehicles sold and market share of 10.8%.

In 2005. the Renault?Nissan Alliance held 9.8% of the worldwide market (5.74% for Nissan and 4.04% for the Renault group) with sales of 3,597,748 (Nissan) and 2,531,500 (Renault Group), placing the alliance fourth after GM, Toyota, and Ford. For the calendar year of 2008, its total global sales were 6,090,304, a decrease of 1.1% against a global industry market decline of 5%, resulting in a 9.4% share, up from 9.1% in 2007.[11]

The marketing success was also matched by success of their return to the Formula 1 circuit as a manufacturer again after buying the Benetton team. The team went on to win both World Drivers and Constructors championships in 2005 and 2006 ahead of the vastly more experienced Ferrari and McLaren teams.

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